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AirTran Holdings Inc., (AAI) the parent company of AirTran Airway's offer to purchase Midwest Air received some hope after a New York hedge fund that has been buying shares said that the airline, Midwest, should entertain the AirTran offer.  Octavian Advisors LP said they are disappointed that Midwest Air’s boards decision to not "engage in meaningful dialogue with AirTran regarding their latest offer."

AirTran Airways is still offering $15 per share worth roughly $389 million dollars for Midwest Air. 

On Thursday Midwest Air Group Inc., (MEH) the parent company of Midwest Air released their first quarter results.  The airline earned $0.31 per share but fell short of what the company had hoped for.  "While the first quarter of 2007 was positive on several levels, overall it fell short of our expectations," said Timothy E. Hoeksema, chairman and chief executive officer.

Midwest needs to entertain this offer.  When Delta and Northwest both come out of bankruptcy in the coming weeks (Delta on April 30) Midwest is going to be in trouble.  Both of those airlines are going to be leaner, tougher and stronger.  Midwest is going to need the power and the financial backing to take on both of them.  Midwest is going to take a pounding from NWA.  They are going to need AirTran’s history of taking on Delta. 

Related:  AirTran Issues Comments on Midwest's Performance in 1st Qtr.   

Charlotte Biz Journal 

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